National Cattlemen’s Beef Association President Steve Foglesong says he gets more phone calls and emails from members regarding the USDA Grain Inspection, Packers and Stockyards Administration proposal on livestock marketing than any other issue...
“It’s order-buyer, it’s large feeders, it’s small feeders, it’s breeding folks, folks that raise bulls and heifers, and all of them ask me the same question…’what are you going to do about this? Because, as I look at this rule, it’s going to take me out of business.’”
That belief was reinforced by a panel of cattle and pork producers, industry officials and economists in Fort Collins, Colorado.
Pursuant to the 2008 Farm Bill - GIPSA drafted rules to improve fairness in the marketing of livestock and poultry - but picked a fight with NCBA and NPPC and meatpackers and processors when it also proposed sweeping reforms to address complaints by disgruntled producers about increasing consolidation and vertical integration.
Activists argue the reforms are necessary to restore competition. Indiana pork producer Mark Legan worries they’ll have the opposite effect...
“I’m against government involvement as long as the markets are working, and I think the market is working now. I’m against burdensome paperwork, in my business, in the production and marketing agreements, all these things have a cost associated with them.”
USDA says the proposed rule will help ensure a level playing field for producers. Opponents consider it an attack on value-based marketing arrangements.
Industry economist Steve Meyer said several things about the GIPSA draft bother him...
“The biggest one is, as you read this rule, it looks as though…I mean the goal here is homogeneity, one price, equality of outcome in the marketplace. I’m all for equality, but I think that the equality in the United States is the equality of opportunity, and that doesn’t necessarily mean that every outcome is going to be the same.”
Colorado cattle rancher, feeder and packer Robbie LeValley was a presenter at Friday’s workshop...
The agriculture marketplace has given our family the opportunity to raise beef, improve our products, enter into value-added contracts receive payment for that improved product, expand our business into a direct marketing enterprise. Each step has been a private business contract between a willing buyer and a willing seller. It does not warrant additional increased scrutiny and private business contract, nor increased litigation, nor increased government intrusion.”
James Herring - President and CEO of Texas-based Friona Industries - the nation’s fourth-largest feedlot - called the GIPSA rule broad, vague and arbitrary...
“I don’t think creating a platform for trial lawyers makes the beef industry any better, more competitive, or creates consumer demand in any way whatsoever. I’ve got 41 years experience, I’ve got 10 million cattle under my belt, and when somebody in GIPSA can say that I’ll certainly, open-mindedly, reconsider letting them run the business.”
According to workshop organizers - 13-hundred people are registered to attend the daylong conference - far fewer than activist groups had anticipated.
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